Research conducted by short term letting agency, Portico Host, has revealed that Landlords or owners of short term let properties in Fairfield, Liverpool, are achieving the best yields in the North West’s largest cities of Liverpool and Manchester.
Those with properties in Fairfield can expect to achieve a rental yield of close to 30% (27.2%) on a short-let basis. This is around 30% more than landlords of longer-term rentals in the same area can achieve: 13.6%. Portico states that the short-let yield is based on an occupancy rate of 50% of the year, which is characteristic for these types of properties due to seasonal demand from tourists and those holidaying or visiting the area.
So, what’s so special about Fairfield? Well, it’s a residential area located on the outskirts of Liverpool City Centre that has recently undergone notable gentrification. A sizeable student population has attached itself to the area, and new eateries and shops have opened up to accommodate growing demand. Despite this, Portico claim that property prices here in Fairfield, Liverpool remain about four times less than they are in the capital city of London. So now we’re beginning to see why the yields landlords can achieve here are so high…
Portico analysed the ten best locations for short-let yields in the north west cities of Liverpool and Manchester, and interestingly, the top eight were Liverpool postcodes: L6, L4 and L7. In Manchester, the highest short let yields were in Hulme (M15) at a healthy 15.1%.
Portico provided a table with their research which showed the best performing locations for short term let yields in Liverpool and Manchester
|Area||Short-let Yield (%)||Short-let Gross Income||Rental Yield (%)||Rental Gross Income||Avg. House Price||
|Anfield, Liverpool||22.7%||£23,766||9.6%||£10,457||£102,772||L6, L4|
|Orrell Park, Liverpool||17.5%||£13,779||7.5%||£6,360||£91,500||L9|
|Vauxhall, Liverpool||15.5%||£20,885||6.8%||£ 20,885||£ 139,061||L2, L3, L5|
|Hulme, Manchester||15.1%||£20,158||6.9%||£9,080||£133,333||M15, M16|
As you can see, Airbnb Hosts or landlords in Fairfield can expect to achieve a gross income of £16,716, meaning they could essentially cover the cost of the average property in Fairfield (£126,779) within seven years.
Portico Host’s Regional Manager, Rachel Dickman, said “It isn’t surprising to find that the properties that are achieving the greatest returns are those that are situated in areas surrounding Liverpool and Manchester city centres. These places typically have excellent transport links, proximity to popular tourist attractions, employment hubs, and good restaurants and cafes.”
She also pointed out how popular Liverpool is on the tourist trail, revealing with 1.34 million people visited the city last year. This is not just students or those on business either; Liverpool has hosted some major sporting events recently, including the Netball World Cup 2019 which recently took place in the M&S Bank Arena.
Dickman concluded, saying “These factors are resulting in a growing number of people wanting to stay in short-let properties in Liverpool, and the increased demand for this type of accommodation is underpinning the rents that can be achieved.”
The same can be said for Manchester, which Portico says has one of the fastest growing populations outside of London, and hosted a staggering 4.9 million visitors last year. Clearly, the demand for short-let property is evident.
And the good news is, landlords can manage short-lets through a tax-efficient company structure, and they can also get specific Airbnb mortgages too.
Portico has recently launched a property portfolio investment service, Portico Portfolio, to enable landlords to invest in short-let properties in Liverpool and Manchester through a tax-efficient company structure.
Fiona Veitch, Portico’s Marketing Director said, “Portico Host expanded into Liverpool and Manchester earlier this year which has been really successful, and we’ve seen a growing number of landlords look to invest in these areas. In line with this, we wanted to create something unique that makes it easy for London landlords or those sitting on savings to invest in the booming north west.
Launching Portico Portfolio allows us to combine our lettings or Portico Host service with Portico Finance, to generate impressive and tax efficient yields for property investors.”
Letting out a property on a short-let basis is ideal for landlords who want to avoid void periods or seek higher profits, or for owners who leave the property vacant often and would like to earn some extra cash.
To find out how much your property can achieve from short term letting, use Portico Host’s Instant Valuation Tool www.portico.com/valuation.